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Hodge said that sometimes the notice can have deficiencies, but they are usually superficial, mostly spelling mistakes.

“If it's a material deficiency, we would have a delay,” he added. “But again, we haven't heard anything about that.”

However, TCEQ confirmed CEWR's claim that the notification does, in fact, need to be revised.

“There were several incorrect numbers in the notification,” said Elizabeth Flores of TCEQ. “From the time they get us the corrections, it will be 60 days until they can begin the rate increase.”

The 60-day rule means the rate increase could begin as late as Nov. 18. CLWSC has until Oct. 18 to fix the mistakes and return the notice to TCEQ for review.

Hodge said CLWSC has worked with its unhappy customers by asking TCEQ for allowance to hold off on the second increase, which is due to hit in March of 2011.

“Part of what's factored into cost is depreciation expense,” he said. “We're willing to defer the depreciation cost until we reach a final settlement, but we need an order from TCEQ to do that. It's an accounting adjustment, and the Securities Exchange Commission needs us to present that order from TCEQ to allow us to make that adjustment.”

CEWR spokesperson Gayle Oglesby said because the notification has been rejected by TCEQ, the rate increases would be pushed back to late November.

Oglesby said the proposed rates are roughly two to three times what San Antonio's and New Braunfels rates are.

In addition, he said CEWR has not been given the opportunity to negotiate with CLWSC.

Hodge said the proposed rates are higher than rates in other areas because the Hill Country does not have the Edwards Aquifer as a resource.

“We have to run pipelines,” he said.

In addition, Hodge said his company was waiting on CEWR to become an official bargaining entity before negotiations resumed.

Oglesby said the coalition is working on a petition.

“If we get 10 percent of the population they serve to sign the petition, we can be named as the official negotiator,” he said.

The rate increase has become a heated issue in Bulverde where Mayor Bill Kraweitz where wrote in his recent column in the Bulverde News that CLWSC has dismissed his and CEWR's recent efforts to negotiate down to a “fairer rate increase.”

Kraweitz cited San Antonio's and New Branfels' rates supporting his claim that the rate increase would be disproportionate. He also urged homeowners to contact their homeowners associations to fight the increase.

Oglesby added that the rate increases would negatively impact the local economy.

“There are a lot of people who plan to move out here after they retire, but they can't sign the petition,” he said. “The rate increase could keep those people from building on the property they own. I do expect them (CLWSC) to make a profit, but I expect it to be a reasonable profit.”

Hodge said most of the increase results from having to fund the costs of new infrastructure. Also, because there have been no rate increases during the last two year, the water company has “gone in the hole.”

“We didn't raise rates because we committed not to do it for two years,” he said. “We don't get to recover that revenue.”